Brazil judge orders Monsanto to deposit royalties related to GMO seed

SAO PAULO (Reuters) – A Brazilian judge has ordered local units of Monsanto Co to deposit royalties related to a GMO soy seed technology in an escrow account, in a decision likely to hinder the U.S. seed company’s ability to collect royalties from the business.

FILE PHOTO: Monsanto is displayed on a screen where the stock is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 9, 2016. REUTERS/Brendan McDermid/File Photo

The ruling on Tuesday relates to a patent dispute between Brazilian soy growers in the state of Mato Grosso and Monsanto, which was recently acquired by Germany’s Bayer AG in a 63 billion-euro deal.

The judge ordered local units of Monsanto to deposit in an escrow account royalties related to the Intacta RR2 Pro genetically modified soy seed technology pending the end of the patent litigation, according to the decision, which was seen by Reuters.

Brazilian soy growers suing Monsanto over the validity of that patent said on Wednesday they expect the company to collect 800 million reais ($204 million) in royalties related to the seed technology in the 2017/18 crop cycle.

Monsanto declined to comment on the value of Intacta-related royalties in Brazil. In a statement, Monsanto said it “has no knowledge of any court decision” related to the patents that protect its Intacta RR2 Pro soy seed technology.

Bayer declined to comment on the ruling, saying it is not allowed to discuss Monsanto affairs before the companies’ integration.